Contractors working on federal projects nationwide have urged President Bola Tinubu to intervene in the prolonged delay of payments owed to them by the Federal Government.
They accused the government of deliberately stalling project execution by withholding funds and called on Tinubu to direct the Minister of Finance, Wale Edun, to release payments without further delay.
According to the contractors, the lack of funding has not only forced them to abandon project sites but has also resulted in heavy financial losses.
Speaking on their behalf on Tuesday, Austin Emegwagwa revealed that the last payment made to contractors was in October 2024.
“The new payment method is referred to as bottom-up, and unfortunately, the bottom-up for November to March has not been paid. Up till now, the releases for the 2024 budget to MDAs are not up to 50 per cent.”
“We have never experienced this long delay since the dawn of the current democratic dispensation. Contractors were paid last in October 2024. So, from November to date, there has been a long wait for payment,” he stated.
Emegwagwa expressed concerns over the government’s handling of budgetary allocations, questioning how the administration intends to implement the 2025 budget when less than 40 percent of the 2024 budget has been disbursed.
He suggested that many contractors suspect the government is intentionally withholding funds despite the fact that several projects are near completion.
“This is a disincentive to most of us who have committed resources to the projects we are handling,” he added.
Emegwagwa further alleged that the government appears to be prioritizing only the Lagos-Calabar coastal road project, claiming that contractors working on it have been receiving payments without issues, while others remain unpaid.
“In spite of subsidy removal, excessive borrowing, and the devaluation of the naira, the government is still not willing to honour its contractual obligations to contractors,” he lamented.
“Most of us are on the verge of going bankrupt because we borrowed money from banks at huge interest rates. The President should kindly come to our aid.”
